Morning Bites (part 2)

🇿🇦South Africa’s PGM mining output grew 7% YoY in September, after the 5% YoY gain in August, according to official statistics. The country’s gold production shrank 4% YoY -- broadly in-line with the 4-5% YoY decline in July-August. In our view, the ongoing monetary easing cycle in the EU/US and China, increase in EU import duties (from 10% up to 45%) on Chinese BEVs (encouraging production of catalyst-containing cars), as well as the continuous global Pd/Pt market deficit, might trigger a recovery in PGM prices in 2025.

Furthermore, according to Reuters, the new US administration is planning to cancel the USD 7,500 tax credit for EV purchases as part of tax-reform legislation. In our view, this move, if it materialised, would notably affect local BEV sales (similar to Germany's case), which is a favourable factor for PGM market fundamentals

SA accounts for ~70% of global Pt, 38% of Pd supply and 3% of world gold production

#PGMs #gold        
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